EconPapers    
Economics at your fingertips  
 

Multiplicity of eco-labels, competition, and the environment

Chema Abderrazak and Adel Ben Youssef
Additional contact information
Chema Abderrazak: Ecole Supérieure des Sciences Economiques et Commerciales de Tunis - Université de Tunis

Post-Print from HAL

Abstract: This article develops a vertical differentiation model to study the competition and environmental effects of multiplicity of eco-labels within a given market. The focus is on the informational content of multiple eco-labels and whether or not they reflect the environmental qualities the labels purport to represent. Two settings are considered. In the first setting, which represents the benchmark, we assume information is complete (consumers know the true environmental qualities of the eco-labeled goods). In the second setting, information is incomplete but consumers use price as a signal for environmental qualities. Our results show that when information is complete, introduction of a second eco-label in a market improves the environmental qualities of eco-labeled goods. When information is incomplete, introduction of a second label leads to a rise in prices and a reduction in the environmental qualities of the goods. The latter setting requires specific regulation whereby information must be revealed by a benevolent social planner.

Keywords: eco-labels; environmental quality; asymmetric information; greenwashing (search for similar items in EconPapers)
Date: 2009-12-04
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00937183
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed

Published in Journal of Agricultural and Food Industrial Organization, De Gruyter, 2009, 7 (2), pp.1-22. 〈10.2202/1542-0485.1271〉

Downloads: (external link)
https://halshs.archives-ouvertes.fr/halshs-00937183/document (application/pdf)

Related works:
Journal Article: Multiplicity of Eco-Labels, Competition, and the Environment (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00937183

DOI: 10.2202/1542-0485.1271

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2019-08-12
Handle: RePEc:hal:journl:halshs-00937183